Amul, a corporation with almost 70 years of history, has been named the world's strongest food brand in Brand Finance's Global Food & Drinks Report 2024. The research highlighted Amul's strong Brand Strength Index (BSI) score of 91 out of 100, which earned the company a AAA+ rating.
Amul's brand value increased by 11% from 2023 to $3.3 billion in the latest ranking. However, brand value is not the same as turnover. In 2022-23, Amul had its greatest ever sales of Rs 72,000 crore (about USD 8.5 billion), an 18.5 percent increase over the previous year. According to the research, Amul's BSI improved mostly due to increased scores in the familiarity, consideration, and recommendation measures.
Amul and Hershey's both have AAA+ brand strength ratings, however Hershey's brand value fell by 0.5% to $3.9 billion, dropping to second place after leading the list last year. Amul dominates the Indian dairy market, accounting for almost 75% of the milk market, 85% of the butter market, and 66% of the cheese market.
Brand Equity during an Industry Transition
Ajimon Francis, Managing Director of Brand Finance India, revealed that over 35 indicators are used to determine brand strength. These encompass a variety of brand development variables such as advertising impact, product diversification, consumer quality perceptions, social media influence, and website traffic. The review also takes into account brand equity achieved through sustainability efforts, community involvement, and governance. The ensuing brand equity must provide favorable business outcomes such as revenue growth, profitability, and customer loyalty.
Savio D'Souza, Valuation Director at Brand Finance, stated, "The food and beverage business is witnessing a rapid shift driven by changing customer tastes. While the reduction in brand value is a burden, it also opens up possibilities for creativity. Brands that successfully adapt to these shifts by exhibiting a clear brand purpose and providing excellent consumer experiences will prosper in this new terrain."
Big Brands Confront Increasing Hurdles
Nestlé remains the world's most valuable food brand, valued at USD 20.8 billion, despite a 7% fall from the previous year. Lay's has risen to second place, with a worth of $12 billion. Coca-Cola continues to top the non-alcoholic beverage sector, with Pepsi coming in second.
The report also revealed a 4% reduction in the entire brand value of the food and beverage sector, which totaled around USD 268 billion. It saw a trend in consumer preferences toward smaller, private-label businesses that provide unique and personalized items, which poses issues for established brands. Convenience foods, on the other hand, are seeing increased brand value as demand rises, indicating chances for new brands that can adapt to these changing consumer habits.
